Just What IS An ETF Anyway?

Curious about one of the hottest new investment instruments out there?

An ETF is an exchange traded fund—a security which gives you the ability to invest in a variety of different sectors of the markets (bonds, commodities, etc.) and diversify investments with less hassle than a mutual fund or singular investments in stocks.

The popularity of this instrument has grown wildly in the past few years. But while there are boons to such flexible investing, there are also drawbacks.

Let this infographic from Mint.com walk you through the basics of all you need to know about ETFs.